Category Archives: Overseas Finance

International News, News, Overseas Finance, Tax

3 in 5 UK Businesses Avoid International Expansion Due to US Sales Tax Complexity

  • 60% of UK businesses have decided not to expand into the US because of sales tax complexity
  • While 80% of UK business leaders believe that tax complexity is one of the greatest burdens facing their organisation.
  • This ongoing tax complexity struggle for UK businesses comes on the eve of the 250th anniversary of the Boston Tea Party, where the transatlantic relationship between Britain and the US came to a head over the taxation of tea.

Avalara, Inc., a leading provider of cloud-based tax compliance automation for businesses of all sizes, today released findings from a new survey* of UK-based businesses around the complexity of US sales tax. The survey found that sales tax complexity is hampering British businesses expanding into the US, with 60% of UK business leaders deciding not to expand into a new market or sell a new product in the US due to the complexity of dealing with additional compliance.

“International sales tax complexity continues to stump UK businesses and is causing many to hold on plans to sell their goods and services into the US, which is hurting the economy on both sides of the pond,” said Alex Baulf, Vice President of Global Indirect Tax at Avalara. “Thankfully there is a solution that does not involve throwing tea or other goods into the Thames.  UK businesses can save time and money by turning to automated tax and compliance solutions like Avalara that are designed to streamline tax calculations, tax filing, and tax record management – removing international sales tax complexities and freeing up time for growth and expansion.”

 

Sales tax is curbing UK business growth

The 16th of December marks 250 years since the Boston Tea Party took place, where the transatlantic relationship between Britain and the US came to a head over the taxation of tea. Hundreds of years later, sales tax complexity continues to put a strain on UK businesses expanding operations to the US. In fact,  65% of UK tea merchants reveal that — in a post-Brexit environment — US sales tax is harder to navigate than selling into Europe. This is despite 9 in 10 UK business leaders seeing the US as a key market for their operations.

Complexity is costing UK businesses time and money

Failing to keep up with the complexity of sales tax, over a third (36%) of UK business leaders have faced fines or penalties due to unintentional non-compliance with sales tax obligations. As a result, a third (33%) have paid up to £1,000 in fines in the last 12 months.

Tax complexity as a whole is costing businesses time. Over a third (35%) of UK business leaders spend up to 10 hours per month on tax compliance on average. As a result, 8 in 10 (83%) UK business leaders argue that sales tax complexity has become one of the greatest burdens facing their business. In fact, three quarters (76%) of UK business leaders reveal that staying compliant with sales tax makes them anxious.

To help businesses calculate their sales tax and shoulder the administrative burden of staying compliant, 77% of UK business leaders say they’d lean on technology, such as AI, to reduce sales tax and cross border tax complexity.

To learn more about the impact of sales tax complexity on UK businesses, please click here.

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About Avalara

Avalara makes tax compliance faster, easier, more accurate, and more reliable for 30,000+ business and government customers in over 90 countries. Tax compliance automation software solutions from Avalara leverage 1,200+ signed partner integrations across leading ecommerce, ERP, and other billing systems to power tax calculations, document management, tax return filing, and tax content access. Visit avalara.com to improve your compliance journey.

 

*Methodology

Research was conducted by Censuswide by surveying 300 UK decision-makers in general businesses and retailers (in small to medium size companies i.e. up to 240 employees), who have a basic understanding of tax regulation and sell goods across the UK / globally between  Nov 9th – Nov 21st.

 

Research was conducted by Censuswide by surveying 102 UK decision-makers who say their company sells tea and sells products internationally between Nov 9th – Nov 21st.

Overseas Finance, Property

Getting a Mortgage in Spain: How Can You Calculate Your Spanish Mortgage?

Purchasing a property in Spain can be an exciting yet complex process. One crucial aspect to consider is understanding your mortgage options and calculating the associated costs accurately.

To assist you in this endeavor, LionsGate Capital offers a reliable and specialized Spanish Mortgage Calculator that simplifies the process. This post aims to guide you through the steps of calculating a mortgage in Spain, highlighting the benefits of using a mortgage calculator.

Understanding Mortgage Calculation in Spain

When it comes to calculating mortgages in Spain, several factors play a role in determining the final amount you will be borrowing and the monthly payments you will make.

These factors include the purchase price of the property, the interest rate, the loan duration, and any additional costs associated with the mortgage process.

Steps to Calculate Your Mortgage

  1. Determine the Purchase Price: Begin by establishing the price of the property you wish to buy in Spain. This is the starting point for any mortgage calculation.
  2. Consider the Down Payment: In Spain, the minimum down payment required is typically 30% of the purchase price. However, it’s recommended to have a higher down payment to secure better loan terms and reduce monthly payments.
  3. Estimate the Interest Rate: The interest rate is a crucial factor that affects your mortgage’s total cost. Spanish mortgage interest rates vary depending on several factors, including the loan term, the type of interest rate (fixed or variable), and your financial profile. A mortgage calculator allows you to input these variables to obtain accurate results.
  4. Determine the Loan Term: The loan term refers to the duration over which you will repay your mortgage. Common loan terms in Spain range from 15 to 20 years. Consider your financial situation and choose a term that suits your needs and budget.
  5. Account for Additional Costs: Apart from the principal and interest, there may be additional costs associated with your mortgage, such as property valuation fees, notary fees, and registration fees. Ensure these costs are factored into your calculations to obtain a comprehensive overview of your mortgage expenses.

Benefits of Using a Mortgage Calculator

A specialized mortgage calculator designed specifically for the Spanish property market has many benefits. However, here are some of the best ones:

  • Accuracy: A mortgage calculator uses up-to-date information and reliable algorithms to ensure accurate results. This helps you make informed decisions based on realistic calculations.
  • User-Friendly Interface: The specialized mortgage calculator’s intuitive interface makes it easy for users to input their data and obtain instant results. Even if you’re unfamiliar with mortgage calculations, the tool simplifies the process.
  • Customization: The calculator allows you to customize various parameters, such as loan terms, interest rates, and down payments, giving you the flexibility to explore different scenarios and find the best mortgage option for your needs.

To Conclude

Calculating a mortgage in Spain requires careful consideration of multiple factors. However, a specialized mortgage calculator can simplify the process and provide accurate results tailored to the Spanish property market. This reliable tool lets you make well-informed decisions about your mortgage, enabling you to proceed confidently with your property purchase in Spain.

 

 

 

 

Finance and Banking, Investment, News, Overseas Finance

China’s New Anti-Espionage Laws Make It More Challenging For Foreign Firms To Invest, Says Leading Intelligence Provider

BEIJING SENDING MIXED MESSAGES TO FOREIGN INVESTORS ACCORDING TO KCS GROUP EUROPE

Investors operating in China are facing a more challenging environment after lawmakers in Beijing passed new anti-espionage laws at the end of April 2023, according to London-based intelligence firm KCS Group Europe (KCSGE).

A recent clampdown on foreign-owned consultancies operating in China is causing concern. The consultancies and business research groups provide financiers – from hedge funds to private equity firms – access to industry experts and investigators who have been able to supply valuable corporate information in the past.

 

KCSGE CEO Stuart Poole-Robb says: “China is effectively cutting off international access to various databases involving corporate registration, patents and even official statistical yearbooks.

“The government in Beijing postponed the release of several major economic reports last year, including GDP figures.

“Then in February 2023, the government urged state-owned firms to phase out using the four big international accountancy firms – PricewaterhouseCoopers, Ernst & Young, KPMG and Deloitte – citing concerns about data security.

“At the end of April, China’s lawmakers passed new anti-espionage laws, which banned the transfer of any information relating to national security and broadened the definition of spying.”

 

The official state press agency Xinhua published the law, which appears to classify documents, data, materials and items related to national security and interests on the same level as state secrets. It also categorises cyber attacks against state organs as espionage. The new laws come into force in July.

With tensions between China and the US growing, American consultancies are under the spotlight. Authorities have targeted global companies Bain & Co, the Mintz Group and Capvision in recent weeks. Police have visited the offices of Capvision and detained local staff at the Mintz Group.

 

Poole-Robb adds: “The authorities in Beijing are sending out mixed messages. Following repeated Covid lockdowns, they stated the economy was open to the global market and foreign investment.

“However, these latest events indicate that there is a heightened sensitivity around data and information. This will make it less attractive for foreign firms to carry out due diligence and make investment decisions, particularly where it’s related to state-owned enterprises.

“Currently, the government in Beijing says some foreign consulting firms are ignoring national security in seeking market share and profit. However, it has not defined what it means by national security, creating considerable uncertainty for potential investors.”